Annual General Meeting 2018

Transcriptie

1 Annual General Meeting 2018 Veldhoven, the Netherlands,

2 Forward looking statements This document contains statements relating to certain projections, business trends and other matters that are forward-looking, including statements with respect to expected trends and outlook, bookings, expected financial results and trends, including expected sales, EUV revenue, gross margin, R&D and SG&A expenses, and annualized effective tax rate for the first quarter of 2018, and expected financial results and trends for the full year 2018, including the expectation for continued solid growth in sales and profitability in 2018, annual revenue opportunity for ASML and EPS potential by 2020 with significant further growth potential into the next decade, expected industry trends and expected trends in the business environment, statements with respect to the intent of customers to insert EUV into volume manufacturing, ASML s commitment to secure system performance, shipments, and support for volume manufacturing, including availability, productivity, throughput, shipments and the ability to support a growing installed base, including timing of shipments (including planned EUV shipments in 2018 and production capacity in 2019), statements with respect to orders, including High-NA system orders and options, the expected benefits (and performance commitments) of High-NA, including securing ASML s lithography roadmap beyond the next decade, lower costs per function by improving imaging, overlay and productivity, increased numerical aperture of the new optical system on High-NA systems, targeted throughput and the new product portfolio resulting from the addition of High-NA, statements with respect to the DUV productivity milestone, the benefits of HMI s e-beam metrology capabilities, including the introduction of a new class of pattern fidelity control, the reduction of measurement time, the benefits of combining ASML s e-beam metrology with computational lithography software and the potential introduction of multiple e-beams in one system and multi-beam enabling further throughput scaling, shrink being a key driver supporting innovation and providing long-term industry growth, lithography enabling affordable shrink and delivering value to customers, the expected continuation of Moore's law and that EUV will continue to enable Moore s law and drive long term value for ASML beyond the next decade, intention to return excess cash to shareholders through stable or growing dividends and regularly timed share buybacks in line with our policy, statements about our proposed dividend, dividend policy and intention to repurchase shares and statements with respect to the share repurchase plan for , including the intention to use certain shares to cover employee share plans and cancel the rest of the shares upon repurchase. You can generally identify these statements by the use of words like "may", "will", "could", "should", "project", "believe", "anticipate", "expect", "plan", "estimate", "forecast", "potential", "intend", "continue", "targets", "commits to secure" and variations of these words or comparable words. These statements are not historical facts, but rather are based on current expectations, estimates, assumptions and projections about the business and our future financial results and readers should not place undue reliance on them. Forward-looking statements do not guarantee future performance and involve risks and uncertainties. These risks and uncertainties include, without limitation, economic conditions, product demand and semiconductor equipment industry capacity, worldwide demand and manufacturing capacity utilization for semiconductors, including the impact of general economic conditions on consumer confidence and demand for our customers' products, competitive products and pricing, the impact of any manufacturing efficiencies and capacity constraints, conditions included in system orders and the risks that systems are not shipped pursuant to orders or as expected because conditions are not met or for any other reason, performance of our systems, the continuing success of technology advances and the related pace of new product development and customer acceptance of new products including EUV, the number and timing of EUV systems expected to be shipped and recognized in revenue, actual EUV production capacity, delays in EUV systems production and development and volume production by customers, including meeting development requirements for volume production, demand for EUV systems being sufficient to result in utilization of EUV facilities in which ASML has made significant investments, our ability to enforce patents and protect intellectual property rights, the outcome of intellectual property litigation, availability of raw materials, critical manufacturing equipment and qualified employees, trade environment, changes in exchange rates, changes in tax rates, available cash and liquidity, our ability to refinance our indebtedness, distributable reserves for dividend payments and share repurchases, results of the share repurchase plan and other risks indicated in the risk factors included in ASML's Annual Report on Form 20-F and other filings with the US Securities and Exchange Commission. These forward-looking statements are made only as of the date of this document. We do not undertake to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.. Slide 2

3 van de Jaarlijkse Algemene Vergadering van Aandeelhouders van ASML Holding N.V. (de Vennootschap ), te houden op woensdag 25 april 2018, om uur in het Auditorium, ASML Gebouw 7, De Run 6665, Veldhoven Slide 3 1. Opening 2. Overzicht van de activiteiten, de financiële situatie en de activiteiten op het gebied van maatschappelijk verantwoord ondernemen van de Vennootschap (Discussiepunt)

4 2017 in review: the highlights Slide 4 Net sales grew 33% to a record 9.05 billion at 45% gross margin Net income grew 44% to a record 2.12 billion resulting in an EPS of 4.93 Installed Base management sales grew more than 25% to a record 2.68 billion EUV Lithography: demonstrated our 125 wafers per hour specification and further improved availability performance. DUV lithography: shipped 161 new systems in 2017, a 21% increase from 2016 Holistic lithography: shipped the first ASML-HMI integrated product, epfm5 Closed strategic agreements, including a minority stake investment in Carl Zeiss SMT, enabling next generation EUV technology supporting customer roadmaps beyond the next decade Capital return: returned more than 1 billion to shareholders through dividends and share buybacks

5 EUV commitment to volume manufacturing continues Slide 5 Crossed 1.1 billion annual revenue mark for EUV, exited 2017 with backlog of 28 EUV systems, value more than 3 billion Q1: 3 EUV systems shipped, 9 EUV orders, 4 High- NA orders for R&D systems from 3 customers and options for 8 early volume systems Planned shipments of 20 systems in 2018, production capacity of at least 30 systems in 2019 For volume manufacturing of logic and memory, ASML remains committed to deliver: Throughput of >125 wafers per hour Availability of >90% on average Shipments on time in sufficient volume Ability to support a growing installed base

6 EUV: key technical and commercial milestones met Slide 6

7 Holistic Lithography portfolio Slide 7

8 Pattern Fidelity Metrology broadens product portfolio First product (epfm5) jointly developed with engineering team of HMI Slide 8 High-resolution e-beam metrology State-of-the-art computational modeling and machine learning Creates defect maps for more wafers with a significantly higher accuracy than existing solutions

9 Holistic Litho products for 7/5 nm nodes launched Slide 9 YieldStar 375F NXT:2000i NXE:3400B

10 Growing number of employees Employees since 2013 (in FTE) Slide ,225 14,072 14,681 15,910 19,215* Europe USA Asia *including 737 FTE from HMI Q1 2018: 20,265 FTE

11 Slide Financials

12 Total net sales million by End-use Slide 12 Installed Base Management Foundry IDM Memory Installed Base Management equals our service and field option sales

13 Consolidated statements of operations M Slide % +44% 1 Customer Co-Investment Program (CCIP). 2 Lithography systems do not include metrology and inspection systems. 3 Our net bookings include all system sales orders for which written authorizations have been accepted (for EUV starting with the NXE:3350B). 4 Net bookings is calculated without giving effect to the impact of adopting the new Revenue Recognition Standard (ASC 606) and Lease Standard (ASC 842) which ASML will adopt as of January 1, These numbers have been prepared in accordance with US GAAP

14 Consolidated statements of Cash flows M Slide 14 * Free cash flow is defined as net cash provided by (used in) operating activities minus investments in Capex (Purchase of Property, plant and equipment and intangibles), see US GAAP Consolidated Financial Statements. These numbers have been prepared in accordance with US GAAP

15 Consolidated Balance sheets M Slide 15 These numbers have been prepared in accordance with US GAAP

16 Capital return to shareholders Paid 517 million dividend and purchased 500 million worth of shares in 2017 Propose to 2018 Annual General Meeting of Shareholders to declare a dividend of 1.40 per ordinary share Announce new share buyback program for of up to 2.5 billion, of which 2.4 million shares for employee share plans and the remainder for cancellation Slide 16 Proposed dividend Dividend Share buyback The dividend for a year is paid in the subsequent year Capital return is cumulative share buyback + (proposed) dividend

17 Q1 results summary Net sales of 2,285 million, net systems sales valued at 1,668 million, Installed Base Management sales at 617 million Slide 17 Gross margin of 48.7% Operating margin of 28.1% Net income as a percentage of net sales of 23.6% Net bookings of 2,442 million, excluding High-NA EUV orders - Installed Base Management equals our service and field option sales - Net bookings are calculated based upon the new Revenue Recognition Standard (ASC 606) and Lease Standard (ASC 842) which ASML has adopted as of January 1, 2018

18 Q2 Outlook Q net sales between 2.5 billion and 2.6 billion Including EUV revenue around 600 million Gross margin around 43% R&D costs of about 375 million SG&A costs of about 115 million Effective annualized tax rate around 14% Slide 18

19 Corporate Governance Code 2016 ASML fully complies with the Dutch Corporate Governance Code 2016 Slide 19 New Corporate Governance Code effective as per 1 January 2017 Full review of the implications for ASML's corporate governance structure and internal processes Amended processes and rules of procedure to the extent necessary, such as BoM rules and SB rules Continued effort to ensure that ASML's practices and procedures are compliant with all rules and regulations, including the Code

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21 3. Bespreking van de implementatie van de Nederlandse Corporate Governance Code 2016 (Discussiepunt) Slide 21

22 4a. Bespreking van de implementatie van het Beloningsbeleid voor de Directie (Discussiepunt) Slide 22

23 Execution of the Remuneration Policy in 2017 (1/2) Changes to the Remuneration Policy for the Board of Management were adopted by the Annual General Meeting of Shareholders of April 26, 2017 and became effective per January 1, Slide 23 Some highlights of the execution of the Remuneration Policy in 2017 are: 1. Base salaries of the BoM have not been increased 2. Short-Term Incentive (STI) payout over 2017 has been 91.1% of max (136.7% of target (65%), i.e. 88.9% of base salary) Qualitative performance criteria (Technology Leadership Index and Market Position): one achieved between target and maximum performance level, the other at maximum Financial performance criteria: EBIT margin: 150% payout of target EUV shipments: 100% payout of target Free Cash Flow: 150% payout of target

24 Execution of the Remuneration Policy in 2017 (2/2) 3. Long-Term Incentive (LTI) payout over performance period has been 75% of max ASML ranked 4th in the ROAIC Peer Group (leading to a payout of 63% of max) The qualitative target was evaluated at 94% of max Total is 69% of max, however, the Supervisory Board decided to use its discretion and increase payout to 75% of max, to better reflect company achievements during 3-year performance period. Slide 24

25 4b. Voorstel tot vaststelling van de overeenkomstig de Nederlandse wet opgestelde jaarrekening van de Vennootschap over het boekjaar 2017 (Stempunt) Slide 25

26 Proefstemming Slide 26 Ik heb het ASML Experience Center al bezocht.

27 4b. Voorstel tot vaststelling van de overeenkomstig de Nederlandse wet opgestelde jaarrekening van de Vennootschap over het boekjaar 2017 (Stempunt) Slide 27

28 4c. Toelichting op het reserverings- en dividendbeleid van de Vennootschap (Discussiepunt) Slide 28

29 4d. Voorstel tot vaststelling van een dividend van EUR 1,40 per gewoon aandeel (Stempunt) Slide 29

30 5a. Voorstel tot verlening van decharge aan de leden van de Directie voor de uitoefening van hun functie in het boekjaar 2017 (Stempunt) Slide 30

31 5b. Voorstel tot verlening van decharge aan de leden van de Raad van Commissarissen voor de uitoefening van hun functie in het boekjaar 2017 (Stempunt) Slide 31

32 6. Voorstel tot goedkeuring van het aantal aandelen toe te kennen aan de Directie (Stempunt) Slide 32

33 7. Samenstelling van de Directie (Discussiepunt) Slide 33

34 8. Samenstelling van de Raad van Commissarissen Slide 34 (2 stempunten; 1 discussiepunt)

35 8a. Voorstel tot herbenoeming van de heer J.M.C. (Hans) Stork als lid van de Raad van Commissarissen (Stempunt) Slide 35

36 8b. Voorstel tot benoeming van mevrouw T.L. (Terri) Kelly als lid van de Raad van Commissarissen (Stempunt) Slide 36

37 8c. Samenstelling van de Raad van Commissarissen in 2019 (Discussiepunt) Slide 37

38 9. Voorstel tot benoeming van KPMG Accountants N.V. als externe accountant voor het rapportagejaar 2019 (Stempunt) Slide 38

39 10. Voorstellen om de Directie aan te wijzen als het orgaan dat bevoegd is tot uitgifte van gewone aandelen of tot toekenning van rechten tot het verwerven van gewone aandelen, alsmede tot het beperken of uitsluiten van het aan de aandeelhouders toekomende voorkeursrecht (4 Stempunten) Slide 39

40 10a. Aanwijzing tot uitgifte van gewone aandelen of tot toekenning van rechten tot het verwerven van gewone aandelen tot 5% voor algemene doeleinden (Stempunt) Slide 40

41 10b. Aanwijzing tot het beperken of uitsluiten van voorkeursrechten met betrekking tot agendapunt 10a) (Stempunt) Slide 41

42 10c. Aanwijzing tot uitgifte van aandelen of tot toekenning van rechten tot het verwerven van gewone aandelen tot 5% in verband met of ter gelegenheid van fusies, acquisities en/of (strategische) allianties (Stempunt) Slide 42

43 10d. Aanwijzing tot het beperken of uitsluiten van voorkeursrechten met betrekking tot agendapunt 10 c) (Stempunt) Slide 43

44 11. Voorstellen om de Directie te machtigen om gewone aandelen te verwerven tot 20% van het geplaatst aandelenkapitaal (2 Stempunten) Slide 44

45 11a. Machtiging om gewone aandelen in te kopen tot een maximum van 10% van het geplaatste kapitaal (Stempunt) Slide 45

46 11b. Machtiging om additioneel gewone aandelen in te kopen tot een maximum van 10% van het geplaatste kapitaal (Stempunt) Slide 46

47 12. Voorstel tot intrekking van gewone aandelen (Stempunt) Slide 47

48 13. Rondvraag Slide Sluiting

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